Savings Acct

[ps99472]

What do you guys think, palladian is offering 1.25% on minimum $10k deposit.
https://www.palladianprivatebank.com/savings-account-apply-now/

Never heard of them, but seems to be big in Illinois.  Here's the bankrate review:
http://www.bankrate.com/rates/safe-sound/memorandums-memos.aspx?fedid=1842065

Next best option ishttps://www.myoptimizerplus.com/banking/index.htmat 0.95%

 

[irvinehomeowner]

Mutual funds.

 

[eyephone]

You are better off investing in stocks.

 

[ps99472]

Mutual funds.

Ok what would you recommend?  I'm thinking an index fund, maybe the Schwab S&P 500 Index (SWPPX), at 0.09% expense, it's one of the lowest fee index funds.  They all track the 500, so pick the lowest fee right?  Also I don't feel comfortable buying stocks/mutual funds right now, maybe I'll jump in when the market gets a nice correction.

 

[eyephone]

Mutual funds.

Ok what would you recommend?  I'm thinking an index fund, maybe the Schwab S&P 500 Index (SWPPX), at 0.09% expense, it's one of the lowest fee index funds.  They all track the 500, so pick the lowest fee right?  Also I don't feel comfortable buying stocks/mutual funds right now, maybe I'll jump in when the market gets a nice correction.

Stocks will do better than real estate this year. 

 

[qwerty]

Mutual funds.

Ok what would you recommend?  I'm thinking an index fund, maybe the Schwab S&P 500 Index (SWPPX), at 0.09% expense, it's one of the lowest fee index funds.  They all track the 500, so pick the lowest fee right?  Also I don't feel comfortable buying stocks/mutual funds right now, maybe I'll jump in when the market gets a nice correction.

By putting your money in an s&p 500 index fund/etf your essentially putting your money in stocks. I hear you though. The only stocks we hold long term are through our 401ks.  I always get the sense that if we put our liquid cash in stocks it would take a dive. When I trade I try to close all my positions the same day, although sometimes I do end up holding them for a couple of days.

 

[eyephone]

Mutual funds.

Ok what would you recommend?  I'm thinking an index fund, maybe the Schwab S&P 500 Index (SWPPX), at 0.09% expense, it's one of the lowest fee index funds.  They all track the 500, so pick the lowest fee right?  Also I don't feel comfortable buying stocks/mutual funds right now, maybe I'll jump in when the market gets a nice correction.

By putting your money in an s&p 500 index fund/etf your essentially putting your money in stocks. I hear you though. The only stocks we hold long term are through our 401ks.  I always get the sense that if we put our liquid cash in stocks it would take a dive. When I trade I try to close all my positions the same day, although sometimes I do end up holding them for a couple of days.

In summary:
1. Invest long term through 401k
2. Day trade is the only way I know

Great advice 

 

[ps99472]

Will it be a triple peak?  Last two bull markets lasted around 6 years each.  That would put us around 2015.  Maybe I'll put my money in bonds?

 

[irvinehomeowner]

I don't do mutual funds now that we have 401k and IRA.

I should have pulled the trigger on AAPL pre split earlier this year considering it's up almost 50% since then.

I think we'll still do it even though it's at its height because the iPhone 6 will probably send it up another 20% at least. It should be worth quite a bit by the time my kids get to college.

An index fund is probably safer and a better return that any savings account, but it's nice to own stuff you use (should get some GOOG too).

 

[SubSolar]

Just put your stock money in VTI or VB, Vanguard low-cost ETF's that beat the S&P and Dow. But money that you may need before 5-10 years shouldn't be put in stocks but whatever MMA or Savings account has the best interest rate. Otherwise you may be forced to sell on a down market and lose money when you need to buy a car/pay taxes/whatever emergency.

 

[homer_simpson]

Just put your stock money in VTI or VB, Vanguard low-cost ETF's that beat the S&P and Dow. But money that you may need before 5-10 years shouldn't be put in stocks but whatever MMA or Savings account has the best interest rate. Otherwise you may be forced to sell on a down market and lose money when you need to buy a car/pay taxes/whatever emergency.

THIS!

 

[eyephone]

Mutual funds.

Ok what would you recommend?  I'm thinking an index fund, maybe the Schwab S&P 500 Index (SWPPX), at 0.09% expense, it's one of the lowest fee index funds.  They all track the 500, so pick the lowest fee right?  Also I don't feel comfortable buying stocks/mutual funds right now, maybe I'll jump in when the market gets a nice correction.

By putting your money in an s&p 500 index fund/etf your essentially putting your money in stocks. I hear you though. The only stocks we hold long term are through our 401ks.  I always get the sense that if we put our liquid cash in stocks it would take a dive. When I trade I try to close all my positions the same day, although sometimes I do end up holding them for a couple of days.

In summary:
1. Invest long term through 401k
2. Day trade is the only way I know

Great advice 

All jokes aside. You should call Schwab or sit down with a financial advisor. (PS9 I assume your with Schwab since you mentioned Scwab ETF. Get a plan for your future. Earning 1% is not going to get you there or for some people, but not for me  )

1. More than one-third of Americans have no savings.http://www.usnews.com/news/articles/2014/08/18/more-than-one-third-of-americans-have-no-savings

2. 1 of four Americans are not saving enough for retirement.http://www.boston.com/business/pers...-retirement/RAYdu7M7F3h3Z2ySOrewaN/video.html

 

[paperboyNC]

What do you guys think, palladian is offering 1.25% on minimum $10k deposit.
https://www.palladianprivatebank.com/savings-account-apply-now/

Never heard of them, but seems to be big in Illinois.  Here's the bankrate review:
http://www.bankrate.com/rates/safe-sound/memorandums-memos.aspx?fedid=1842065

Next best option ishttps://www.myoptimizerplus.com/banking/index.htmat 0.95%

You should have 6mo of expenses in cash so a savings accounts like this is good for that money. Stocks are NOT good for that money.

As long as a bank is FDIC insured you should not hesitate to put $250,000 in savings with them. Go for the best rate / low fee combo. Make sure you can get your money out quickly when needed.

 

[eyephone]

What do you guys think, palladian is offering 1.25% on minimum $10k deposit.
https://www.palladianprivatebank.com/savings-account-apply-now/

Never heard of them, but seems to be big in Illinois.  Here's the bankrate review:
http://www.bankrate.com/rates/safe-sound/memorandums-memos.aspx?fedid=1842065

Next best option ishttps://www.myoptimizerplus.com/banking/index.htmat 0.95%

You should have 6mo of expenses in cash so a savings accounts like this is good for that money. Stocks are NOT good for that money.

As long as a bank is FDIC insured you should not hesitate to put $250,000 in savings with them. Go for the best rate / low fee combo. Make sure you can get your money out quickly when needed.

The ROI would be higher on stocks than a CD. It all DEPENDS if you are a risk adverse person. I'm sure you know this, but the 1% they give you, they turn around and loan it out for a higher return.

This is a case of different investing philosophy. Risk and reward.

 

[paperboyNC]

You should have 6mo of expenses in cash so a savings accounts like this is good for that money. Stocks are NOT good for that money.

As long as a bank is FDIC insured you should not hesitate to put $250,000 in savings with them. Go for the best rate / low fee combo. Make sure you can get your money out quickly when needed.

The ROI would be higher on stocks than a CD. It all DEPENDS if you are a risk adverse person. I'm sure you know this, but the 1% they give you, they turn around and loan it out for a higher return.

This is a case of different investing philosophy. Risk and reward.

Let's say 2008-09 repeats itself. Stocks fall 50%. Bonds fall 40%. You get laid off. Your spouse gets furloughed with a 10% salary cut. Would you rather have six months of living expenses in cash or in the market?

 

[eyephone]

You should have 6mo of expenses in cash so a savings accounts like this is good for that money. Stocks are NOT good for that money.

As long as a bank is FDIC insured you should not hesitate to put $250,000 in savings with them. Go for the best rate / low fee combo. Make sure you can get your money out quickly when needed.

The ROI would be higher on stocks than a CD. It all DEPENDS if you are a risk adverse person. I'm sure you know this, but the 1% they give you, they turn around and loan it out for a higher return.

This is a case of different investing philosophy. Risk and reward.

Let's say 2008-09 repeats itself. Stocks fall 50%. Bonds fall 40%. You get laid off. Your spouse gets furloughed with a 10% salary cut. Would you rather have six months of living expenses in cash or in the market?

You have more problems on your hands if there is a financial crisis.

To protect yourself you can place the following: limit order to sell or stop loss order

 

[paperboyNC]

Let's say 2008-09 repeats itself. Stocks fall 50%. Bonds fall 40%. You get laid off. Your spouse gets furloughed with a 10% salary cut. Would you rather have six months of living expenses in cash or in the market?

You have more problems on your hands if there is a financial crisis.

To protect yourself you can place the following: limit order to sell or stop loss order

I did fine in the financial crisis. One reason is that I had cash on hand to buy stocks at a 50% discount. I was also lucky that neither my wife nor I got laid off or furloughed. I also did not own a home at that time.

The problem with stop loss orders if you can often end up buying high and selling low. How do you know the difference between the 10% correction that triggers your stop-loss order and a the 50% free-fall?

Cash or true cash equivalents should always be a part of an investment portfolio. The smart money (think Warren Buffet) had billions and billions in cash that he invested liberally at the bottom.

 

[eyephone]

Let's say 2008-09 repeats itself. Stocks fall 50%. Bonds fall 40%. You get laid off. Your spouse gets furloughed with a 10% salary cut. Would you rather have six months of living expenses in cash or in the market?

You have more problems on your hands if there is a financial crisis.

To protect yourself you can place the following: limit order to sell or stop loss order

I did fine in the financial crisis. One reason is that I had cash on hand to buy stocks at a 50% discount. I was also lucky that neither my wife nor I got laid off or furloughed. I also did not own a home at that time.

The problem with stop loss orders if you can often end up buying high and selling low. How do you know the difference between the 10% correction that triggers your stop-loss order and a the 50% free-fall?

Cash or true cash equivalents should always be a part of an investment portfolio. The smart money (think Warren Buffet) had billions and billions in cash that he invested liberally at the bottom.

Hoping for another financial crisis anytime soon is like making wishes in a water well. 

 

[irvinehusky]

I don't think anyone wishes for a crisis like in 2008 but if you position your finances to profit from them, it makes the pain worth it. 

Hoping for another financial crisis anytime soon is like making wishes in a water well. 

 

[paperboyNC]

Hoping for another financial crisis anytime soon is like making wishes in a water well. 

I'm definitely not hoping for a financial crisis. As a percentage of net worth my assets are something like:

Home: 200%
Home Equity: 60%
Stocks: 20%
Bonds: 13%
Cash: 5%
Other: 5%
Other Debt: (-3%)

If housing prices crash again I'll lose 60% of my net worth.